The assets of the Government Employees Pension Fund (GEPF) have grown from R127bn since its inception in 1996 to R2.38-trillion in March 2024, says principal executive officer Musa Mabesa.
Mabesa said at a round-table discussion in Sandton on Thursday the GEPF, which has 1.2-million members, paid out R142.3bn in benefits in 2023/24. A total of R92bn in contributions was received during the period under review.
The fund registered a 2.6% increase in its investment portfolio; a 7.2% growth in reserves over 10 years; a R52.04bn dividend outcome; and a R116bn net investment outcome.
GEPF chair Frans Baleni said the fund was the largest retirement fund in the region and vital on the continent. “We are number one in our league in Africa. Globally, we are number seven.”
Mabesa said: “The fund has maintained a healthy funding status ranging between 110% and 119% over a 10-year period. The fund has grown steadily over time with expected returns. The fund displays consistent, long-term performance despite notable market volatility in recent years.”
The external operating environment affecting the fund included geopolitics, regulatory or policy change in SA, high inflation globally, interest rates and tariffs, climate change, SA’s energy supply constraints and infrastructure challenges, he said.
Mabesa said challenges in the administration of pensions included outdated infrastructure to efficiently administer benefits. Other factors were an increase in claims after the two-pot system’s implementation; socioeconomic issues “affecting members, which results in higher withdrawals”; and increased cybersecurity risks.
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